With one more chance to benefit prospective investors in ACs and LED lights, the central government decided to reopen the PLI scheme application window for 90 days.
On Monday, the Indian government decided to reopen the application window for the Production Linked Incentive (PLI) Scheme, which targets white goods such as air conditioners (ACs) and LED lights. Open for 90 days, the applications will be accepted from July 15 to October 12.
This decision came in response to growing ‘appetite’ of the industry in the country and strong interest from companies eager to invest further in the scheme.
According to the press notification, both new and existing companies can apply for the scheme. Existing participants looking to invest further or switch product categories are also eligible. Applicants must fulfil specific requirements detailed in the PLIWG scheme guidelines, available online.
To improve liquidity, working capital management, and operational efficiency for beneficiaries, the decision has been made to switch from annual to quarterly PLI claims processing. The guidelines have been updated accordingly.
As per the scheme guidelines, approved applicants in the proposed round are eligible to PLI for up to three years if they are new or if existing beneficiaries with investments up to March 2023 move to a higher investment category.
Besides, existing beneficiaries with investments up to March 2022 moving to a higher category will be eligible for PLI for a maximum of two years. Upon failure to meet the investment or sales targets in a given year, they can submit claims based on their original investment plan. This flexibility is available only once during the scheme period.
To date, 66 companies have pledged Rs 6,962 crore under the scheme. Firms such as Daikin, Voltas, LG, Blue Star, and Dixon have invested in manufacturing components for ACs and LED lights.
The government sees these investments to enable the production of parts that were previously not manufactured in India.
Approved on April 7, 2021, the PLI Scheme for White Goods, part of the ‘Atmanirbhar Bharat’ initiative, aims to enhance manufacturing in India and create jobs. It will run from FY 2021-22 to FY 2028-29 and has a Rs. 6,238 crore budget.
